Dogecoin's Path To $1: Analyst Sees This Critical Breakthrough As Bull Run Trigger

Crypto analyst Ali has indicated that Dogecoin DOGE/USD is nearing the apex of a multi-year descending triangle formation. 

What Happened: Ali on Saturday said, “A weekly candlestick close above $0.0835 could trigger the beginning of a new DOGE bull run, potentially toward $1."

The descending triangle formation consists of a horizontal support line and a downward-sloping resistance line, creating a triangular shape. Breakouts from this pattern are closely watched by crypto traders and analysts to determine the future direction of the asset.

Ali notes the $0.0482 support level "as any sign of weakness around this level could lead to a new yearly low.”

#Dogecoin is approaching the apex of this multi-year descending triangle formation.

A weekly candlestick close above $0.0835 could trigger the beginning of a new $DOGE bull run, potentially toward $1. Yet, we must watch out for the $0.0482 support, as any sign of weakness… pic.twitter.com/Emcwfyv6cE

— Ali (@ali_charts) October 13, 2023

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Why It Matters: However, not all analysts share the same optimism for Dogecoin. 

Crypto analyst Nicholas Merten last week expressed a skeptical viewpoint regarding the potential for a bullish trend in DOGE. In a YouTube video, Merten said that Dogecoin lacks the typical characteristics observed during a bull market.

Merten explained, “For me to believe in a bullish Dogecoin, we’d need to witness consecutive monthly increases of 10%, 20%, or 30%.” He referenced past instances where Dogecoin experienced significant spikes ranging from 30% to as high as 600%, but stressed the need for sustained growth over consecutive months.

To support his perspective, Merten referred to Dogecoin’s behavior in June and October 2022, comparing it to its performance against Bitcoin BTC/USD. He believes that Dogecoin’s potential would be best demonstrated if it followed a similar pattern during these months.

Price Action: At the time of writing, DOGE was trading at $0.060, up 1.16% in the last 24 hours, according to Benzinga Pro.

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